Russia Creates Its Own Cryptocurrency Called The ‘CryptoRuble’

Russia is one of the countries that has not adopted a friendly stance towards the cryptocurrency industry as President Vladimir Putin had earlier banned the use of cryptocurrencies in the country.

So it came as a surprise to everyone, when Russia announced earlier this week that they plan on introducing their very own cryptocurrency which will be known as the ‘CryptoRuble’.

Russia will be in charge of issuing its new cryptocurrency which will be closely monitored by a government agency. Russians will be able to buy and sell the CryptoRuble and exchange it within the country for regular rubles.

Russians who are unable to disclose the source of cryptorubles will have to pay the government a 13 percent tax when they convert the cryptocurrency into rubles.

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Russians will also be subjected to a 13 percent tax when buying and selling the cryptoruble. They will only have to pay the 13 percent tax on the additional earned amount that they receive due to the currency exchange. The Russian government will not decentralize the cryptoruble and therefore have the opportunity to modify its blockchain network whenever it desires. This would mean that Russian government could manipulate the cryptocurrency at any time and as a result, it is highly unlikely that bitcoin exchanges outside Russia would be interested in accepting the cryptoruble.

In a statement Nikolay Nikiforov, the Russian communications minister said

I so confidently declare that we will launch a cryptocurrency for one simple reason: if we do not, then in 2 months our neighbors in the Eurasian Economic Community will do it. It will, most likely, be a closed model with a certain volume of regulated emissions.

Earlier this month, Russia’s central bank stated that they intended to crackdown on all cryptocurrency exchanges and trading platforms that were promoting digital currencies such as Bitcoin. President Vladimir Putin had also made reference to cryptocurrencies this month stating that they were becoming very popular throughout the world but also had a lot of risk attached to it.

President Putin also acknowledged that cryptocurrencies were being accepted as a regular means of payment in a number of countries and were also becoming a popular means of investment. It now looks like the Russian government wants to take full control over the cryptocurrency industry in the country and control all transactions going forward. China and Taiwan have recently banned cryptocurrency exchanges and ICO’s while countries like Japan and Australia have been very open to making cryptocurrencies part of the mainstream.

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